Daily Market Commentary: Semiconductors Blast Through 200-day MA
Yesterday, semiconductors were stalling out at their 200-day MA; today there was no holding it back. The day started with a gap and didn't look back. In the process of breaking the 200-day MA it also negated the October and November 'Bull Traps'. The gain was also accompanied with a 'Golden Cross' between 20-day and 50-day MAs.
The 5% move in the semiconductor index was also good news for the Nasdaq. The Nasdaq broke past 2,737 resistance defined from the October swing high and registered an accumulation day. The December-January rally continues to drive improvement in technicals as the relative shift from Large Caps to Technology issues intensifies.
The Nasdaq 100 similarly broke resistance on higher volume accumulation.
The Russell 2000 took a back seat on the action, but not before it added nearly 2%. It was able to break resistance last week so is slightly ahead of the curve, despite losing ground against the Nasdaq.
The long side remains the favored position as today's action checked all the right boxes for bulls. The next watchpoints are 'bull traps' created from newly created support from the breakouts.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Trading Strategy Marketplace Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.
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The 5% move in the semiconductor index was also good news for the Nasdaq. The Nasdaq broke past 2,737 resistance defined from the October swing high and registered an accumulation day. The December-January rally continues to drive improvement in technicals as the relative shift from Large Caps to Technology issues intensifies.
The Nasdaq 100 similarly broke resistance on higher volume accumulation.
The Russell 2000 took a back seat on the action, but not before it added nearly 2%. It was able to break resistance last week so is slightly ahead of the curve, despite losing ground against the Nasdaq.
The long side remains the favored position as today's action checked all the right boxes for bulls. The next watchpoints are 'bull traps' created from newly created support from the breakouts.
------
Follow Me on Twitter
Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Trading Strategy Marketplace Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.
Zignals offers a full suite of FREE financial services including price and fundamental stock alerts, stock charts for Indian, Australian, Frankfurt, Euronext, UK, Ireland and Canadian stocks, tabbed stock quote watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too. Build your own strategy and sell it in the MarketPlace to earn real cash.
You can read what others are saying about Zignals on Investimonials.com.
JOIN ZIGNALS TODAY - IT'S FREE!
